Number of applications for unemployment benefits in USA unexpectedly fell

The number of applications for unemployment benefits in USA unexpectedly fell to the lowest level in seven weeks. The applications for unemployment fell by 4,000 to 259,000 during the week ended on September 3. The economists forecast was for increase to 265,000. While the unemployment rate is below 5% and new jobs reached record levels in July, the managers focus to retain employees and attract new ones. Applications for unemployment benefits need to report an increase in wages, which may encourage Fed to raise interest rates before the end of 2016.

The pace of economic growth will be slightly better in the second half of the year, which should continue to support demand for labor.

Average of applications for the last four weeks, which is subject to less volatility in the weekly data, fell by 1,750 to 261,250. Applications remain below 300,000 for 79 consecutive week, which the longest period since 1970.

The number of Americans continuing to receive unemployment benefits decreased by 7,000 to 2.14 million during the week ended August 27. The unemployment rate among people eligible for aid is 1.6% for the seventh week.